KakaoBank Raises Term Deposit Interest Rate by 0.1 Percentage Point

KakaoBank will raise the interest rate on its one-year term deposit by 0.1 percentage point starting October 18.

On October 17, KakaoBank announced that it would adjust the base interest rates for its term deposits and flexible savings accounts. As a result, the base interest rate for term deposits with maturities of at least 6 months but less than 24 months will increase from 2.5% per annum to 2.6% per annum.

Flexible savings accounts will also see increases: for maturities of at least 6 months but less than 12 months, the rate will rise from 2.6% to 2.7% per annum, and for maturities of at least 12 months but less than 24 months, the rate will increase from 2.7% to 2.8% per annum.

However, the base interest rates for longer-term products have been lowered. The base rates for term deposits and flexible savings accounts with maturities of 24 months or longer have been reduced by 0.1 percentage point, from 2.5% to 2.4% per annum.

A KakaoBank representative stated, "We raised the interest rates for one-year maturity products to reflect the rise in market rates. However, as we expect the trend of rate cuts to continue in the long term, we lowered the rates for products with maturities of 24 months or longer."